Bankruptcy judge signs off on order allowing Terraform Labs to subpoena FTX entities By Cointelegraph

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Bankruptcy judge signs off on order allowing Terraform Labs to subpoena FTX entities

Published Aug 01, 2023 11:28AM ET Updated Aug 01, 2023 01:00PM ET

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Bankruptcy judge signs off on order allowing Terraform Labs to subpoena FTX entities

A judge in the bankruptcy case for defunct crypto exchange FTX has issued an order allowing Terraform Labs to subpoena information that could be used in its case brought by the United States Securities and Exchange Commission.

In a July 31 filing in the U.S. Bankruptcy Court for the District of Delaware, Judge John Dorsey said Terraform Labs was permitted to serve FTX Trading and FTX US with subpoenas aimed at gathering evidence the firm could use in its defense from allegations of fraud by the SEC. The crypto firm claimed in a July 19 filing that the failures of its algorithmic stablecoin and governance token were the result of a coordinated attack from short-sellers, potentially involving Alameda Research.

July 31 order from Judge John Dorsey on Terraform Labs’ request to subpoena FTX records. Source: Kroll

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